Apple is back in business in China thanks to iPhone 8

Apple is finally experiencing some growth in China. The company has broken a bad run of sales the company was experiencing from the past 18 months thanks to the good sales of iPhone 8. According to a report from Canalys, Apple has recorded an annual growth of more than 40 percent for Apple in Q3 2017 with 11 million shipments during the three-month period. It noted also that the iPhone 8 accounted for a higher proportion of iPhone sales than the iPhone 7 did last year.

“Apple’s growth this quarter is only temporary. The high sell-in caters to the pent-up demand of iPhone upgraders in the absence of the iPhone X. Price cuts on earlier models after announcing the iPhone 8 have also helped. However, Apple is unlikely to sustain this growth in Q4,” said Canalys Research Analyst Mo Jia.

Canalys

Mo Jia further says that both price and supply constraints mean that the iPhone X isn’t going to help Apple much in Q4. He said, “Excitement for the launch of the iPhone X is building in China. While the iPhone X launches this week, its pricing structure and supply are inhibiting. The iPhone X will enjoy a healthy grey market status, but its popularity is unlikely to help Apple in the short term.”

Another Canalys Research Analyst Hattie He said, “Q4 will be a highly competitive quarter off the bat, with the 11.11 online shopping festival taking center stage. On the back of its aggressive offline expansion, Xiaomi is poised to break the dominance of Huawei, Oppo and Vivo next quarter, making it an even tighter battle to the top.”